North Carolina Down Payment Assistance Systems

Online Payments - The North Carolina Housing Finance Agency has two great programs for first-time Home Buyers. These programs would be the Down Payment Assistance Program and the Mortgage Credit Certificate.

You purchase a house between December 1, 2009 and January 1, 2009 and if you meet the requirements for one of those programs, it is also possible to qualify for the $8,000 tax credit just enacted into law in the Federal Economic Stimulus Plan.

First, who is a first-time Home Buyer? There is a first-time Home Buyer someone who hasn't owned a home in the prior three years. Here is the same qualifying definition.

What is a Mortgage Credit Certificate and Who Qualifies?

A Mortgage Credit Certificate (MCC) is a federal tax credit to assist home buyers with average and low incomes.

If you are eligible for the MCC, you'll be able to claim 20% of the interest you pay as a credit on your federal income taxes on your mortgage. You can save as much as .

You may have the ability to combine this with the $8,000 tax credit if you do qualify for 2009, for the MCC. This might reduce a buyer's tax liability by $10,000.

Who Qualifies for an MCC?

Who qualifies for an MCC is based on your own income as well as the price of the property you're purchasing. Household income is defined as the “gross income of the mortgagor and any person anticipated to live in the dwelling who's 18 years old or older.”

House price limitations that apply in Orange, Durham and Chatham Counties and the income are listed below.

MCC Income Limitations 1 Man $61,500 2 Individuals $61,500 3 Persons $70,500 4 Persons $70,500

MCC Sales Cost Limits New Dwelling $220,000 Existing House $210,000

Who Qualifies for Down Payment Assistance?

Home buyers that want help with their deposit and closing costs might be able to get down payment assistance - or, put simply, interest-free, deferred second mortgages up to $8,000. The customer only has to pay $1,000 of their own funds and the load would pay as much as .

This plan has more rigorous income limitations than the MCC program outlined above. Like the MCC application, it might be used along with all the new $8,000 tax credit on home purchases between December 1, 2009 and January 1, 2009. The deposit help, nonetheless, can not be utilized in combination with all the MCC. This really is an either or scenario.

House price limitations Durham and Chatham Counties and the income are listed below.

Down Payment Assistance Income Limits

1 Person $39,950 2 Individuals $45,650 3 Persons $51,350 4 Men $57,050

Down Payment Assistance Sales Cost Limits New Home $210,000 Existing Residence $210,000